If a prime trader bids for Rupees 15 million even while the Central Bank of Sri Lanka (CBSL) needs only Rupees 01 billion, then it is abnormal, said Committee on Public Enterprises (COPE) chairman and Janatha Vimukthi Peramuna (JVP) Member of Parliament Sunil Handunnetti, while speaking during the 360 political talk show of TV Derana.
While commenting further he said, “When the Central Bank proposed 1,000 the Public Debt Department said ‘Let us obtain about Rs. 2,600 at the auctions. Let us obtain the balance directly. The need of the CBSL was only for Rs. 13.3 billion. They announced one billion to see how much money the bidders had. In fact, the CBSL needed only Rs. 2.6 billion through auctions, the balance would be direct.”
“I responsibly say that if necessary, the Central Bank could have obtained the balance from the Employees Provident Fund (EPF). On that particular day Rs. 6 billion was available for the government with the EPF. If the Central Bank directly takes Rs. 6 billion from the EPF then this 6 and the 2.6 through auctions would add up to Rs. 8.6 billion. The balance is 4.4. If necessary this amount could have been obtained directly from the others. Then the interest rates in the entire market would not increase. It would not reach 12.6. This is the real financial fraud in this deal. We say this with responsibility; how did Perpetual Treasuries gain heavenly wisdom to do this?“
“How did they extend the final five minutes of closing and bid for 75 per cent of the total bond transaction during the final eight minutes or so? How did they use the Bank of Ceylon for this? These are incidents that have happened for the first time in Sri Lanka’s history.